Hypercom Shareholders Approve VeriFone Merger

VeriFone Systems Inc.’s pending acquisition of rival terminal maker Hypercom Corp. moved a step closer Feb. 24 as Hypercom announced its shareholders had approved the companies’ merger agreement.

The agreement was approved by more than 99% of the shares that were voted, which represented about 80% of total shares outstanding as of the record date for the special meeting of Hypercom stockholders.

The acquisition, which was announced in November (see story), is expected to result in a combined company with $2 billion in revenue next year, Hypercom said last week (see story).

However, Gil Luria, an analyst who follows the terminal makers for Wedbush Securities, expressed doubts about the merger’s prospects in a research note last week, saying merchants might stop buying Hypercom terminals because of the deal. If that happens, Luria wrote, VeriFone might back away (see story).

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